Intel Cuts Pentium II, Celeron Prices

Intel Corp. cut prices on its Pentium II and Celeron processors for desktop computers by as much as 31% as the No. 1 chip maker prepares to introduce a faster version of its cheapest product. Santa Clara-based Intel cut prices on its 300-megahertz Celeron chip, which is designed for computers costing about $1,000 or less, by 30%, to $112 from $159. The price for the 266-MHz Celeron chip was cut 19% to $86 from $106. A Pentium II running at 300-MHz was cut about 31% to $209 from $305. All prices are based on purchases in lots of 1,000 units. Intel hopes to boost demand for personal computers, which has been lackluster even in the wake of steep price cuts by PC makers such as Compaq Computer Corp. PC shipments rose just 10% in the second quarter, less than expected, though they’re expected to be stronger in the second half. Intel’s shares rose $3 to close at $86.06 on Nasdaq., and shares of PC-related companies also rose. Dell Computer Corp. jumped $5.38 to $110.25, also on Nasdaq; Gateway Inc. shares rose $1.81 to $54.44 on the New York Stock Exchange; and memory-chip maker Micron Technology Inc. rose $2.25 to $29.31 on the NYSE. Last week, Intel moved up the introduction of faster Celeron processors to August, several months earlier than expected.